By: Sandhya Ladwal, Research Analyst, GSDN

Greenland, the world’s largest island, has become a central focus in global geopolitics due to its strategic location, natural resources, and the accelerating impacts of climate change. Its significance spans historical military interests, economic opportunities, and environmental considerations that collectively influence international relations.

Greenland is located in the Arctic and North Atlantic Oceans, it connects North America, Europe, and the Arctic region. This distinctive geographical position has historically rendered it a strategic asset for military endeavours and continues to bolster its significance in the realms of global trade and security. The island has rich natural resources, including rare earth elements, like Uranium and Oil which draw the interest of major global powers to obtain essential materials for contemporary technologies. Furthermore, the ongoing melting of Greenland’s ice sheet, which significantly contributes to global sea-level rise, highlights its environmental significance and the wider consequences of climate change.

History

Greenland’s global importance was raised during World War II, when the United States constructed naval posts on the island to safeguard the North Atlantic and Axis powers. The most important of these is the Thule Air Base, which was built in 1941 & is still a crucial part of NATO’s missile defence system today. Recognizing Greenland’s strategic significance, the United States offered Denmark US$ 100 million in gold for the island in 1946, but the offer was turned down. Throughout the Cold War, Greenland’s position made it a vital region for observing Soviet actions in the Arctic and North Atlantic. The Thule Air Base worked as an important early warning system regarding potential missile attacks, emphasising the island’s position within global security frameworks.

2009 Act of Self-Government

An important turning point in Greenland’s journey toward increased autonomy and possible independence from Denmark was the Greenland Self-Government Act of 2009. It replaced the Home Rule Act of 1979 and gave Greenland power over its internal affairs while preserving Denmark’s dominance over defence, foreign policy, and money. The act’s acknowledgment of Greenlanders as a distinct people under international law was one of its most noteworthy features. The Greenlander people decide to seek full independence through a referendum. Furthermore, Greenland’s cultural and national identity was strengthened when Greenlandic (Kalaallisut) was designated as the only official language.

Natural resources and geostrategic

Greenland has large deposits of rare earth elements, which are necessary for technologies and manufacturing the batteries which include electric vehicles and wind turbines, wind and solar technologies that have drawn global interest. The United States and the European Union are eager to get these natural resources so that they can reduce their reliance on China’s dominant supply chain. However, mining in Greenland has been hindered by low ore concentrations, harsh Arctic temperatures, and the island’s dedication to environmental sustainability.

Is climate change opening new trade routes?

The melting of Arctic ice is opening up new shipping routes, such as the Northern Sea Route, which could drastically reduce transit time between Asia and Europe. Greenland’s closeness to these new routes increases its strategic relevance in global trade. Furthermore, the island’s ice sheet contributes significantly to global sea-level rise, making it a key focus of climate change research and worldwide environmental policy discussions.

Greenland is a geostrategic location for countries like the United States, China and Russia. The Arctic has transformed into a stage for geopolitical rivalry among key nations, such as the U.S., Russia, and China. Russia has been increasing Its military activities in the Arctic, whereas China aims to create a “Polar Silk Road” within its Belt and Road Initiative. With its strategic positioning and resources, Greenland stands at the crossroads of these interests, which require careful decision for the geopolitical relations.

The United States maintains a significant perspective on Greenland’s importance to national security. In 2019, President Donald Trump articulated a desire to acquire Greenland, highlighting its strategic position. This suggestion faced strong resistance from Denmark, who underscored the island’s autonomy and the aspirations of its inhabitants to shape their own destiny.

Russia has been expanding its military presence in the Arctic, reopening and modernizing Soviet-era bases and enhancing its capabilities in the region. Greenland’s location is strategically significant for Russia, as it lies along potential Arctic shipping routes and near areas of military interest. Russia’s activities in the Arctic are part of a broader strategy to assert its influence and secure access to natural resources as polar ice melts.

China has expressed interest in Greenland’s vast deposits of rare earth elements, which are needed for a variety of technologies, including electronics and renewable energy systems. Chinese companies have sought to invest in Greenland’s mining sector to secure these resources. China has identified Greenland as a valuable partner in its Arctic strategy, emphasizing economic cooperation. Chinese companies have expressed interest in Greenland’s mining sector, particularly for rare earth elements needed for modern technology. For instance, Chinese firms have engaged in discussions with Greenlandic authorities since 2012, exploring opportunities in mining and infrastructure development.

However, these investments have faced challenges. Greenland, the low concentrations of ore and a strong commitment to environmental stability prevented the extraction of minerals. In addition, the differences and cultural problems have occurred in the practice of work, in particular with regard to the potential influx of Chinese workers for large -scale projects.

Greenland in the world: Nothing about us without us

In February 2024, Greenland introduced its Foreign, Security, and Defence Policy Strategy (2024-2033), “Greenland in the World: Nothing about us without us.” This strategy reflects Greenland’s desire to enhance its presence and influence in global matters, especially concerning the Arctic region.

Enhanced autonomy in Foreign Affairs:   Greenland aims to take a more active role in foreign policy decisions, reducing reliance on Denmark and ensuring that international policies affecting Greenland involve direct Greenlandic participation.

Strengthening Arctic Partnerships:   The strategy emphasizes building closer ties with Arctic North American regions, including Alaska and Arctic Canada (Yukon, Northwest Territories, and Nunavut). Greenland proposes establishing a new political forum called the Arctic North American Forum to facilitate collaboration on shared Arctic interests.

Commitment to Peace and Security:     Greenland aims to keep the Arctic a region of low tension. The government intends to set up a peace centre in Greenland to encourage dialogue and stability within the area.

Economic Development and Environmental Stewardship:   The strategy is important in balancing economic growth with environmental sustainability. Greenland is keen on developing its natural resources, including critical minerals, while implementing measures to protect its fragile Arctic ecosystem.

Greenland’s role in global geopolitics is complex, involving strategic military concerns, valuable natural resources, and significant environmental issues. As climate change alters conditions in the Arctic, Greenland’s significance is expected to increase, presenting both opportunities and challenges. The island must navigate the intricate task of managing economic growth alongside environmental protection while dealing with the interests of major global powers. The future of Greenland will greatly impact, and be shaped by, broader geopolitical trends in the Arctic and beyond.